National Energy Legislation Amendment Act 2020 (Vic)
National Energy Legislation Amendment Act 2020
No. 28 of 2020
table of provisions
Section Page
Part 1—Preliminary
1Purposes
2Commencement
Part 2—Amendment of National Electricity (Victoria) Act 2005
3New Division 6A of Part 3 inserted
Part 3—Amendment of National Gas (Victoria) Act 2008
4New Division heading inserted into Part 7
5Definitions
6New Division 2 of Part 7 inserted
Part 4—Related amendments to other Acts
Division 1—Amendment of Electricity Industry Act 2000
7Offer to domestic or small business customers (licensee standing offers)
Division 2—Amendment of Gas Industry Act 2001
8Offer to domestic or small business customers (licensee standing offers)
Part 5—Repeal of this Act
9Repeal of this Act
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Endnotes
1 General information
National Energy Legislation Amendment Act 2020
No. 28 of 2020
[Assented to 20 October 2020]
The Parliament of Victoria enacts:
Part 1—Preliminary
1Purposes
The purposes of this Act are—
(a)to amend the National Electricity (Victoria) Act 2005—
(i)to change the period of operation of distribution determinations applying to Victorian distribution network service providers from 5 calendar years to 5 financial years; and
(ii)to provide for and enable the implementation of transitional arrangements relating to the change in that period of operation; and
(b)to amend the National Gas (Victoria) Act 2008—
(i)to change the period of operation of access arrangements applying to Victorian distribution gas companies providing services by means of covered pipelines from 5 calendar years to 5 financial years; and
(ii)to provide for and enable the implementation of transitional arrangements relating to the change in that period of operation; and
(c)to make related amendments to the Electricity Industry Act 2000 and the Gas Industry Act 2001.
2Commencement
(1)Subject to subsection (2), this Act comes into operation on a day or days to be proclaimed.
(2)If a provision of this Act does not come into operation before 1 June 2021, it comes into operation on that day.
Part 2—Amendment of National Electricity (Victoria) Act 2005
3New Division 6A of Part 3 inserted
After Division 6 of Part 3 of the National Electricity (Victoria) Act 2005 insert—
"Division 6A—Modification of distribution determination arrangements
Subdivision 1—Preliminary
16VADefinitions and interpretation
(1)In this Division—
2018 rate of return instrument means the first rate of return instrument made by the AER under section 18I of the National Electricity (Victoria) Law;
applicable 2016–2020 distribution determination means—
(a)the AusNet 2016–2020 distribution determination; or
(b)the Citipower 2016–2020 distribution determination; or
(c)the Jemena 2016–2020 distribution determination; or
(d)the Powercor 2016–2020 distribution determination; or
(e)the United Energy 2016–2020 distribution determination;
applicable 2021–2026 distribution determination
means the distribution determination applying to electricity network services provided by a Victorian DNSP that applies immediately after the applicable
2016–2020 distribution determination applying to the services provided by the Victorian DNSP ceases effect;
AusNet 2016–2020 distribution determination means the distribution determination made by the AER on 26 May 2016 under clause 6.11.1 of the Rules that applies to electricity network services provided by AusNet Electricity Services Pty Ltd (ABN 91 064 651 118)—
(a)as remade from time to time under the Rules; or
(b)as varied from time to time under the Rules or this Division;
Citipower 2016–2020 distribution determination means the distribution determination made by the AER on 26 May 2016 under clause 6.11.1 of the Rules that applies to electricity network services provided by Citipower Pty Ltd (ABN 76 064 651 056)—
(a)as remade from time to time under the Rules; or
(b)as varied from time to time under the Rules or this Division;
constituent decision has the meaning given by clause 6.12.1 of the Rules;
determination extension period, for an applicable 2016–2020 distribution determination, means the period—
(a)commencing on 1 January 2021; and
(b)ending on 30 June 2021;
Jemena 2016–2020 distribution determination means the distribution determination made by the AER on 26 May 2016 under clause 6.11.1 of the Rules that applies to electricity network services provided by Jemena Electricity Networks (Vic) Ltd (ABN 82 064 651 083)—
(a)as remade from time to time under the Rules; or
(b)as varied from time to time under the Rules or this Division;
modify includes add, omit or substitute;
Powercor 2016–2020 distribution determination means the distribution determination made by the AER on 26 May 2016 under clause 6.11.1 of the Rules that applies to electricity network services provided by Powercor Australia Limited (ABN 89 064 651 109)—
(a)as remade from time to time under the Rules; or
(b)as varied from time to time under the Rules or this Division;
publish, in relation to a modification made by the AER under section 16VJ, or a variation decision, means publish as defined under Chapter 10 of the Rules;
United Energy 2016–2020 distribution determination means the distribution determination made by the AER on 26 May 2016 under clause 6.11.1 of the Rules that applies to electricity network services provided by United Energy Distribution Pty Ltd (ABN 70 064 651 029)—
(a)as remade from time to time under the Rules; or
(b)as varied from time to time under the Rules or this Division;
variation decision means a decision under section 16VK(2);
Victorian DNSP means any of the following entities—
(a)AusNet Electricity Services Pty Ltd (ABN 91 064 651 118);
(b)Citipower Pty Ltd (ABN 76 064 651 056);
(c)Jemena Electricity Networks (Vic) Ltd (ABN 82 064 651 083);
(d)Powercor Australia Limited (ABN 89 064 651 109);
(e)United Energy Distribution Pty Ltd (ABN 70 064 651 029).
(2)Words and expressions used in this Division that are defined in Chapter 10 of the Rules—
(a)have, subject to paragraph (b), the same meaning in this Division as they have under the Rules; and
(b)are to be read subject to any modifications made to those words or expressions under this Division.
(3)Subsection (2) does not apply to the extent that the context or subject matter otherwise indicates or requires.
Subdivision 2—Regulatory years for distribution determinations
16VBMeaning of regulatory year for the purposes of distribution determinations on and after 1 July 2021
Despite anything to the contrary in the National Electricity (Victoria) Law or the Rules, on and after 1 July 2021 a regulatory year for a regulatory control period in respect of a regulated distribution system operator is a consecutive period of 12 months commencing on 1 July every year.
Subdivision 3—Extension of operation of 2016–2020 distribution determinations
16VCRegulatory control period includes determination extension period
(1)This section applies despite anything to the contrary in—
(a)the National Electricity (Victoria) Law; or
(b)the Rules; or
(c)an applicable 2016–2020 distribution determination.
(2)For the purposes of the National Electricity (Victoria) Law, the Rules, an applicable 2016–2020 distribution determination and this Division—
(a)the regulatory control period for which a Victorian DNSP is subject to a control mechanism imposed by the applicable 2016–2020 distribution determination is—
(i)the 5 regulatory years which apply since the commencement of the determination; and
(ii)the determination extension period; and
(b)the determination extension period is taken to be a regulatory year.
16VDPricing proposals for extended period of applicable 2016–2020 distribution determinations
(1)This section applies despite anything to the contrary in—
(a)the National Electricity (Victoria) Law; or
(b)the Rules; or
(c)an applicable 2016–2020 distribution determination.
(2)Subject to this Division, a Victorian DNSP must submit a pricing proposal under clause 6.18.2 of the Rules for approval under the Rules, for the determination extension period.
Note
The determination extension period is taken to be a regulatory year of the regulatory control period for which a Victorian DNSP is subject to a control mechanism imposed by an applicable 2016–2020 distribution determination—see section 16VC.
(3)The pricing proposal mentioned in subsection (2) must comply with the Victorian DNSP's applicable 2016–2020 distribution determination regardless of whether the determination has been varied by the AER under section 16VK.
(4)In addition, the pricing proposal mentioned in subsection (2) may include tariffs that reflect the efficient costs that the Victorian DNSP incurs as a direct result of the enactment of Subdivision 3.
(5)For the purposes of this section—
(a)a Victorian DNSP's tariff structure statement applying to the Victorian DNSP during the initial regulatory control period is taken to be a constituent decision, or constituent component, of the Victorian DNSP's applicable 2016–2020 distribution determination; and
(b)the initial regulatory control period is taken to include the determination extension period for the Victorian DNSP's applicable 2016–2020 distribution determination.
Note
Initial regulatory control period is defined in clause 11.75.1 of the Rules.
Subdivision 4—Orders in Council relating to applicable distribution determinations
16VEOrder setting requirements for modifications and variations to certain instruments
(1)The Governor in Council, by Order published in the Government Gazette, for the purposes of giving effect to Subdivision 3, may do any one or more of the following—
(a)specify particular modifications that must, or must not, be made to the 2018 rate of return instrument under section 16VJ, including modifications relating to—
(i)the formulas or methodologies set out in the 2018 rate of return instrument under which a return on debt trailing average portfolio calculation is determined;
(ii)the methodology or criteria set out in the 2018 rate of return instrument under which a return on debt averaging period is determined;
(b)set out principles with which variations made to an applicable 2016–2020 distribution determination under section 16VK, or an applicable
2021–2026 distribution determination, must conform;
(c)set out objectives which must be met by—
(i)variations made to an applicable 2016–2020 distribution determination under section 16VK; or
(ii)an applicable 2021–2026 distribution determination;
(d)specify particular variations which must, or must not, be made to an applicable 2016–2020 distribution determination under section 16VK;
(e)specify matters as matters to which an applicable 2016–2020 distribution determination, or an applicable
2021–2026 distribution determination, must, or must not, apply.
(2)Without limiting subsection (1), an Order under that subsection may relate to any of the following—
(a)a constituent decision, or component, of an applicable 2016–2020 distribution determination or an applicable
2021–2026 distribution determination, including a building block determination that is a constituent decision or constituent component of—
(i)an applicable 2016–2020 distribution determination;
(ii)an applicable 2021–2026 distribution determination;
(b)any efficient costs that the Victorian DNSP incurs as a direct result of the enactment of Subdivision 3 and how those costs may be recovered under—
(i)an applicable 2016–2020 distribution determination;
(ii)an applicable 2021–2026 distribution determination.
16VFOrder modifying the National Electricity (Victoria) Law and Rules
(1)The Governor in Council, by Order published in the Government Gazette, for the purposes of giving effect to an Order under section 16VE, may do either or both of the following—
(a)modify the operation of the National Electricity (Victoria) Law as it applies as a law in Victoria;
(b)modify the operation of the Rules (including definitions in Chapter 10 of the Rules) as they have the force of law in Victoria.
(2)Without limiting subsection (1), an Order under that subsection may include a modification that provides that—
(a)a specified provision of the Rules does not have the force of law in Victoria;
(b)a specified definition in the Rules (including Chapter 10 of the Rules) does not have the force of law in Victoria.
16VGGeneral provisions apply to Orders under this Subdivision
(1)An Order under section 16VE or 16VF may—
(a)be of limited or general application;
(b)differ according to time, place or circumstances;
(c)confer functions and powers on, or leave any matter or thing to be decided by, the AER, or impose any duty on the AER;
(d)contain provisions of a savings or transitional nature on the making of the Order;
(e)make any modifications in relation to, or provide for, any matter that is—
(i)incidental to a matter set out in the Order; or
(ii)necessary to give effect to a matter set out in the Order.
(2)An Order under section 16VE or 16VF has effect as from the date specified in the Order.
16VHFunctions and powers conferred and duties imposed on AER
A function or power conferred or a duty imposed on the AER by an Order under this Subdivision is taken to be conferred or imposed by this Act.
Note
See sections 44AH and 44AI of the Competition and Consumer Act 2010 of the Commonwealth.
16VIEffect of Orders under this Subdivision
(1)An Order under this Subdivision has effect according to its tenor in relation to the following despite anything to the contrary in—
(a)this Act;
(b)any agreement or contract.
(2)In addition—
(a)the National Electricity (Victoria) Law applies as a law of Victoria subject to an Order under this Subdivision; and
(b)the Rules have the force of law in Victoria subject to an Order under this Subdivision; and
(c)the 2018 rate of return instrument has the force of law in Victoria subject to any modifications under section 16VJ or any Order under this Subdivision; and
(d)an applicable 2016–2020 distribution determination (whether or not varied under section 16VK) has effect subject to any Order under this Subdivision; and
(e)an applicable 2021–2026 distribution determination has effect subject to any Order under this Subdivision.
Subdivision 5—Application of modified rate of return instrument
16VJApplication of modified 2018 rate of return instrument
(1)This section applies despite anything to the contrary in—
(a)the National Electricity (Victoria) Law; or
(b)the Rules; or
(c)an applicable 2016–2020 distribution determination.
(2)The rate of return on capital calculated in accordance with the 2018 rate of return instrument applies, subject to any modifications under subsection (3), to the making of an AER economic regulatory decision in relation to the determination extension period of an applicable 2016–2020 distribution determination.
(3)The AER, for the purposes of giving effect to Subdivision 3, may modify the application of the 2018 rate of return instrument to the making of an AER economic regulatory decision in relation to the determination extension period of an applicable 2016–2020 distribution determination.
(4)Without limiting subsection (3), a modification under that subsection may relate to—
(a)the formulas or methodologies set out in the 2018 rate of return instrument under which a return on debt trailing average portfolio calculation is determined;
(b)the methodology or criteria set out in the 2018 rate of return instrument under which a return on debt averaging period is determined.
(5)The AER must not make a modification under subsection (3) that is inconsistent with any applicable Order under this Division.
(6)The AER must publish any modification under subsection (3).
Subdivision 6—AER variations to applicable 2016–2020 distribution determinations
16VKAER variations to applicable 2016–2020 distribution determinations
(1)This section applies despite anything to the contrary in—
(a)the National Electricity (Victoria) Law; or
(b)the Rules; or
(c)an applicable 2016–2020 distribution determination.
(2)Subject to this Division, the AER may make a variation—
(a)to any constituent decision, or constituent component, of an applicable 2016–2020 distribution determination, including a building block determination, that the AER considers necessary to be made as a consequence of the enactment of Subdivision 3; and
(b)to any other part of an applicable
2016–2020 distribution determination that the AER considers necessary to be made as a consequence of—
(i)the enactment of Subdivision 3; or
(ii)the making of a variation under paragraph (a).
(3)Without limiting subsection (2), the AER may, if the AER considers it necessary for a Victorian DNSP to recover the efficient costs it incurs as a direct result of the enactment of Subdivision 3, make any necessary variations under that subsection to an applicable 2016–2020 distribution determination to enable the Victorian DNSP to recover those costs.
(4)The AER must not make a variation decision that includes the matter mentioned under subsection (3) unless the Victorian DNSP submits a pricing proposal under section 16VD that extends to the efficient costs that the Victorian DNSP incurs as a direct result of the enactment of Subdivision 3.
(5)The AER must not make a variation decision that is inconsistent with any applicable Order under this Division.
(6)The AER must publish a variation decision.
Subdivision 7—Other matters
16VLDefinitions
In this Subdivision—
commencement day means the day on which section 3 of the National Energy Legislation Amendment Act 2020 comes into operation;
relevant distribution determination, for a Victorian DNSP, means the first distribution determination that is to apply to electricity network services provided by the Victorian DNSP after the applicable 2016–2020 distribution determination ceases effect.
16VMFailure to make a decision under the Law or Rules within time does not invalidate the decision
(1)This section applies if—
(a)the AER makes a decision (however described) under the National Electricity (Victoria) Law or Rules in relation to the making of a distribution determination that is to apply to electricity network services provided by a Victorian DNSP for the regulatory control period commencing on 1 July 2021; and
(b)the decision is made after the expiry of the period of time specified by the National Electricity (Victoria) Law or the Rules for the making of that decision.
(2)Despite anything to the contrary in the National Electricity (Victoria) Law or the Rules, the decision is not to be taken to be an invalid decision only because the decision is not made within the specified period of time.
(3)A decision to which this section applies takes effect on and after—
(a)the day it is made; or
(b)if it specifies a date for operation or effect that is after the day it is made, that specified date.
16VNFailure to meet particular pricing proposal timeframe does not invalidate relevant distribution determinations
(1)This section applies if before the commencement day a Victorian DNSP, in relation to the making of a relevant distribution determination for the Victorian DNSP, submitted a regulatory proposal, a proposed tariff structure statement and an exemption application (if required) to the AER under clause 6.8.2(b) of the Rules on a day that resulted in a period of time that was less than the minimum period of time required under that clause.
(2)Despite anything to the contrary in the National Electricity (Victoria) Law or Rules, on and after the commencement day, the relevant distribution determination is not to be taken to be invalid only because the Victorian DNSP did not comply with clause 6.8.2(b) of the Rules.
16VOFailure to meet particular consultation timeframe does not invalidate relevant distribution determinations
(1)This section applies if before the commencement day the AER, in relation to the making of a relevant distribution determination for a Victorian DNSP—
(a)did the thing required by clause 6.9.3(b) or (b2) of the Rules after the time within which the clause requires it to be done; or
(b)specified a time for the purposes of clause 6.9.3(c) of the Rules in an invitation published under clause 6.9.3(b) of the Rules that resulted in a period of time that was less than the minimum period of time required under clause 6.9.3(c) of the Rules.
(2)Despite anything to the contrary in the National Electricity (Victoria) Law or Rules, on and after the commencement day, the relevant distribution determination is not to be taken to be invalid only because the AER, as the case requires—
(a)did the thing required by clause 6.9.3(b) or (b2) of the Rules after the time within which the clause required that thing to be done; and
(b)specified a time for the purposes of clause 6.9.3(c) of the Rules in an invitation published under clause 6.9.3(b) of the Rules that resulted in a period of time that was less than the minimum period of time required under clause 6.9.3(c) of the Rules.
16VPModified 2018 rate of return instrument may affect certain pre‑2018 AER economic regulatory decisions
Despite section 18V of the National Electricity (Victoria) Law, the 2018 rate of return instrument, as modified under section 16VF of this Act, may affect an AER economic regulatory decision made before the commencement of that instrument in relation to an applicable 2016–2020 distribution determination.
16VQValidation of certain regulatory information notices served on Victorian DNSPs
(1)A relevant regulatory information notice prepared, or purportedly prepared, and served before the commencement day that would have been validly prepared if this Division had been in operation at the time that the relevant regulatory information notice was prepared, or purportedly prepared, is, on and after the commencement day, taken to always had the same force and effect as it would have had if this Division had been in operation at that time.
(2)In this section—
relevant regulatory information notice means—
(a)a regulatory information notice served on a Victorian DNSP that refers to or states a regulatory control period in respect of that Victorian DNSP that commences on 1 July 2021 and ends on 30 June 2026; or
(b)a regulatory information notice served on a Victorian DNSP on 4 October 2019 or 7 November 2019.".
Part 3—Amendment of National Gas (Victoria) Act 2008
4New Division heading inserted into Part 7
Before section 59 of the National Gas (Victoria) Act 2008 insert—
"Division 1—Modifications relating to wholesale gas markets and pipeline service providers".
5Definitions
In section 59 of the National Gas (Victoria) Act 2008, for "Part" substitute "Division".
6New Division 2 of Part 7 inserted
After section 60 of the National Gas (Victoria) Act 2008 (and the note at the foot of that section) insert—
"Division 2—Modifications relating to distributor access arrangements
Subdivision 1—Preliminary
61Definitions and interpretation
(1)In this Division—
2018 rate of return instrument means the first rate of return instrument made by the AER under section 30D of the National Gas (Victoria) Law;
2022 rate of return instrument means the rate of return instrument made by the AER under section 30D of the National Gas (Victoria) Law that replaces the 2018 rate of return instrument;
applicable 2018–2022 access arrangement means—
(a)the AusNet Gas Services
2018–2022 access arrangement; or
(b)the Multinet Gas Distribution Partnership 2018–2022 access arrangement; or
(c)the Australian Gas Networks Partnership 2018–2022 access arrangement;
applicable 2023–2027 access arrangement means the full access arrangement applying to services provided by a Victorian distributor by means of a declared distribution system that applies immediately after the applicable 2018–2022 access arrangement applying to the services provided by the Victorian distributor ceases effect;
applicable access arrangement extension period, for an applicable 2018–2022 access arrangement, means the period—
(a)commencing on the day on which an 2018–2022 access arrangement would otherwise cease to have effect; and
(b)ending on 30 June 2023;
Note
See also section 63.
AusNet Gas Services 2018–2022 access arrangement means the full access arrangement—
(a)applying to services provided by AusNet Gas Services Pty Ltd (ABN 43 086 015 036) by means of a declared distribution system; and
(b)published by the AER with its final decision under rule 62 of the Rules on 30 November 2017 approving the access arrangement proposal forming the basis for that full access arrangement—
as revised from time to time under the Rules, or varied from time to time under the Rules or this Division;
Australian Gas Networks Partnership 2018–2022 access arrangement means the full access arrangement—
(a)applying to services provided by Australian Gas Networks (Vic) Pty Ltd (ACN 085 899 001) or Australian Gas Networks (Albury) Limited (ABN 84 000 001 249) by means of a declared distribution system; and
(b)published by the AER with its final decision under rule 62 of the Rules on 30 November 2017 approving the access arrangement proposal (consolidated under an approval under rule 53 of the Rules) forming the basis for that full access arrangement—
as revised from time to time under the Rules, or varied from time to time under the Rules or this Division;
modify includes add, omit or substitute;
Multinet Gas Distribution Partnership 2018–2022 access arrangement means the full access arrangement—
(a)applying to services provided by Multinet Gas Distribution Partnership (ACN 634 214 009) by means of a declared distribution system; and
(b)published by the AER with its final decision under rule 62 of the Rules on 30 November 2017 approving the access arrangement proposal forming the basis for that full access arrangement—
as revised from time to time under the Rules, or varied from time to time under the Rules or this Division;
variation decision means a decision under section 69(2);
Victorian distributor means any of the following—
(a)AusNet Gas Services Pty Ltd (ABN 43 086 015 036);
(b)Multinet Gas Distribution Partnership (ACN 634 214 009);
(c)Australian Gas Networks (Vic) Pty Ltd (ACN 085 899 001) or Australian Gas Networks (Albury) Limited (ABN 84 000 001 249).
(2)Words and expressions used in this Division that are defined or used in the Rules—
(a)have, subject to paragraph (b), the same meaning in this Division as they have under the Rules; and
(b)are to be read subject to any modifications made to those words or expressions under this Division.
(3)Subsection (2) does not apply to the extent that the context or subject matter otherwise indicates or requires.
Subdivision 2—Access arrangement periods for distribution pipeline access arrangements
62AER must, in a full access arrangement decision, fix 1 July as date on which full access arrangement takes effect
(1)This section applies if, under the Rules, the AER receives an access arrangement proposal for a full access arrangement, or a revised full access arrangement, that is to apply to services provided by means of a declared distribution system on and after the commencement of section 6 of the National Energy Legislation Amendment Act 2020.
(2)Despite anything to the contrary in the National Gas (Victoria) Law or the Rules, or any access arrangement proposal, the AER must, in a full access arrangement decision that approves the access arrangement proposal, fix 1 July following the date of the decision as the date on which the full access arrangement, or a revised full access arrangement, to which the decision relates takes effect.
Subdivision 3—Extension of operation of applicable 2018–2022 access arrangements
63Applicable 2018–2022 access arrangements extended until 30 June 2023
(1)This section applies despite anything to the contrary in—
(a)the National Gas (Victoria) Law; or
(b)the Rules; or
(c)an applicable 2018–2022 access arrangement.
(2)Subject to this Division, an applicable
2018–2022 access arrangement continues in effect until 30 June 2023.
Subdivision 4—Orders in Council relating to applicable access arrangements
64Order setting requirements for modifications and variations to certain instruments
(1)The Governor in Council, by Order published in the Government Gazette, for the purposes of giving effect to Subdivision 3, may do any one or more of the following—
(a)declare whether the 2018 rate of return instrument or the 2022 rate of return instrument applies to an applicable access arrangement extension period for an applicable 2018–2022 access arrangement (the declared rate of return instrument);
(b)modify the application of the declared rate of return instrument as it applies to the making of an AER economic regulatory decision relating to an applicable access arrangement extension period for an applicable 2018–2022 access arrangement;
(c)set out principles with which variations made to an applicable 2018–2022 access arrangement under section 69 must conform;
(d)set out objectives which must be met by variations made to an applicable 2018–2022 access arrangement under section 69;
(e)specify particular variations which must, or must not, be made to an applicable 2018–2022 access arrangement under section 69;
(f)specify matters as matters to which an applicable 2023–2027 access arrangement must, or must not, apply.
(2)Without limiting subsection (1), an Order under that subsection may relate to and of the following—
(a)the review submission date contained in an applicable 2018–2022 access arrangement;
(b)a reference tariff variation mechanism included in an applicable 2018–2022 access arrangement;
(c)an incentive mechanism included in an applicable 2018–2022 access arrangement;
(d)any fixed principles included in an applicable 2018–2022 access arrangement;
(e)reference tariffs specified in an applicable 2018–2022 access arrangement, including their approval;
(f)reference tariffs that are to apply during—
(i)the applicable access arrangement extension period of an applicable 2018–2022 access arrangement;
(ii)an applicable 2023–2027 access arrangement;
(g)revenues to be derived from the provision of pipeline services during—
(i)the applicable access arrangement extension period of an applicable 2018–2022 access arrangement;
(ii)an applicable 2023–2027 access arrangement;
(h)costs and expenditure to be incurred in the provision of pipeline services during—
(i)the applicable access arrangement extension period of an applicable 2018–2022 access arrangement;
(ii)an applicable 2023–2027 access arrangement;
(i)any efficient costs that a Victorian distributor incurs as a direct result of the enactment of Subdivision 3 and how those costs may be recovered under—
(i)an applicable 2018–2022 access arrangement;
(ii)an applicable 2023–2027 access arrangement.
65Order modifying the National Gas (Victoria) Law and Rules
(1)The Governor in Council, by Order published in the Government Gazette, for the purposes of giving effect to an Order under section 64, may do either or both of the following—
(a)modify the operation of the National Gas (Victoria) Law as it applies as a law in Victoria;
(b)modify the operation of the Rules as they have the force of law in Victoria.
(2)Without limiting subsection (1), an Order under that subsection may include a modification that provides that—
(a)a specified provision of the Rules does not have the force of law in Victoria;
(b)a specified definition in the Rules does not have the force of law in Victoria.
66General provisions apply to Orders under this Subdivision
(1)An Order under section 64 or 65 may—
(a)be of limited or general application;
(b)differ according to time, place or circumstances;
(c)confer functions and powers on, or leave any matter or thing to be decided by, the AER, or impose any duty on the AER;
(d)contain provisions of a savings or transitional nature on the making of the Order;
(e)make any modifications in relation to, or provide for, any matter that is—
(i)incidental to a matter set out in the Order; or
(ii)necessary to give effect to a matter set out in the Order.
(2)An Order under section 64 or 65 has effect as from the date specified in the Order.
67Functions and powers conferred and duties imposed on AER
A function or power conferred or a duty imposed on the AER by an Order under this Subdivision is taken to be conferred or imposed by this Act.
Note
See sections 44AH and 44AI of the Competition and Consumer Act 2010 of the Commonwealth.
68Effect of Orders under this Subdivision
(1)An Order under this Subdivision has effect according to its tenor in relation to the following despite anything to the contrary in—
(a)this Act;
(b)any agreement or contract.
(2)In addition—
(a)the National Gas (Victoria) Law applies as a law of Victoria subject to an Order under this Subdivision; and
(b)the Rules have the force of law in Victoria subject to an Order under this Subdivision; and
(c)the 2018 rate of return instrument or the 2022 rate of return instrument, as the case requires, has the force of law in Victoria subject to any Order under this Subdivision; and
(d)an applicable 2018–2022 access arrangement (whether or not varied under section 69) has effect subject to any Order under this Subdivision; and
(e)an applicable 2023–2027 access arrangement has effect subject to any Order under this Subdivision.
Subdivision 5—AER variations to applicable 2018–2022 access arrangements
69AER variations to applicable 2018–2022 access arrangements
(1)This section applies despite anything to the contrary in—
(a)the National Gas (Victoria) Law; or
(b)the Rules; or
(c)an applicable 2018–2022 access arrangement.
(2)Subject to this Division, the AER may make any variation to an applicable 2018–2022 access arrangement that it considers necessary to be made as a consequence of the enactment of Subdivision 3.
(3)Without limiting subsection (2), the AER may do any one or more of the following—
(a)vary—
(i)the review submission date contained in an applicable
2018–2022 access arrangement;
(ii)a reference tariff variation mechanism included in an applicable 2018–2022 access arrangement;
(iii)an incentive mechanism included in an applicable 2018–2022 access arrangement;
(iv)any fixed principles included in an applicable 2018–2022 access arrangement;
(v)reference tariffs specified in an applicable 2018–2022 access arrangement;
(b)provide for—
(i)reference tariffs that are to apply during the applicable access arrangement extension period of an applicable 2018–2022 access arrangement;
(ii)revenues to be derived from the provision of pipeline services during the applicable access arrangement extension period of an applicable 2018–2022 access arrangement;
(iii)costs and expenditure to be incurred in the provision of pipeline services during the applicable access arrangement extension period of an applicable 2018–2022 access arrangement;
(iv)the recovery by a Victorian distributor of any efficient costs that the Victorian distributor incurs as a direct result of the enactment of Subdivision 3;
(c)make any other variations to an applicable 2018–2022 access arrangement that the AER considers necessary to be made as a consequence of—
(i)the enactment of Subdivision 3; or
(ii)the doing of a thing under subsection (2) or paragraph (a) or (b) of this subsection.
(4)The AER must not make a variation decision that is inconsistent with any applicable Order under this Division.
(5)When the AER makes a variation decision, it must—
(a)give a copy of the decision to the Victorian distributor whose applicable 2018–2022 access arrangement has been varied by the decision; and
(b)publish the decision on the AER's website.".
Part 4—Related amendments to other Acts
Division 1—Amendment of Electricity Industry Act 2000
7Offer to domestic or small business customers (licensee standing offers)
(1)After section 35(3AB)(a) of the Electricity Industry Act 2000 insert—
"(ab)the variation is necessary to comply with an Order in force under subsection (3AC); or".
(2)After section 35(3AB) of the Electricity Industry Act 2000 insert—
"(3AC)The Minister, by Order published in the Government Gazette, may, as a consequence of the enactment of Division 6A of Part 3 of the National Electricity (Victoria) Act 2005 and any variations made to an applicable 2016–2020 distribution determination under that Division—
(a)direct a licensee to vary tariffs under subsection (3) as specified under the Order; and
(b)specify the period within which the tariffs must be varied.
(3AD)Without limiting subsection (3AC)(a), a direction under an Order under subsection (3AC) may specify principles, a formula or methodology in accordance with which tariffs must be varied.".
(3)In section 35(8) of the Electricity Industry Act 2000 insert the following definition—
"applicable 2016–2020 distribution determination has the same meaning as in section 16VA(1) of the National Electricity (Victoria) Act 2005;".
Division 2—Amendment of Gas Industry Act 2001
8Offer to domestic or small business customers (licensee standing offers)
(1)After section 42(3AB)(a) of the Gas Industry Act 2001 insert—
"(ab)the variation is necessary to comply with an Order in force under subsection (3AC); or".
(2)After section 42(3AB) of the Gas Industry Act 2001 insert—
"(3AC)The Minister, by Order published in the Government Gazette, may, as a consequence of the enactment of Division 2 of Part 7 of the National Gas (Victoria) Act 2008 and any variations made to an applicable
2018–2022 access arrangement under that Division—
(a)direct a licensee to vary tariffs under subsection (3) as specified under the Order; and
(b)specify the period within which the tariffs must be varied.
(3AD)Without limiting subsection (3AC)(a), a direction under an Order under subsection (3AC) may specify principles, a formula or methodology in accordance with which tariffs must be varied.".
(3)In section 42(8) of the Gas Industry Act 2001 insert the following definition—
"applicable 2018–2022 access arrangement has the same meaning as in section 61(1) of the National Gas (Victoria) Act 2008;".
Part 5—Repeal of this Act
9Repeal of this Act
This Act is repealed on 1 June 2022.
Note
The repeal of this Act does not affect the continuing operation of the amendments made by it (see section 15(1) of the Interpretation of Legislation Act 1984).
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Endnotes
1 General information
See for Victorian Bills, Acts and current authorised versions of legislation and up-to-date legislative information.
Minister's second reading speech—
Legislative Assembly: 17 June 2020
Legislative Council: 15 October 2020
The long title for the Bill for this Act was "A Bill for an Act to amend the National Electricity (Victoria) Act 2005, the National Gas (Victoria) Act 2008 and to make related amendments to the Electricity Industry Act 2000 and the Gas Industry Act 2001 and for other purposes."
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